The sector is expected to grow at a compound annual growth rate (CAGR)
of 11.46% till 2019. The growth will be supported by various drivers,
such as increase in higher education population and enrollment rates,
increased government expenditure, use of technology, and demand for
private education.

It further discusses the key regulations impacting the private higher
education, and opportunities for foreign players in the same along with
various best practices followed in private higher education space.

Indian higher education sector is witnessing high growth rate, both from
demand as well as supply side. While the enrollment in higher education
has increased by an estimated 18% from 202 to 2013, the sector has also
witnessed 107 new universities, from 2012 to August 2014.

Higher education sector has been allocated 20.2% of the total
educational budget, and 3.5% of the overall government expenditure in
the 2014-15 budget. Besides government, several private players are also
investing in the Indian higher education space. Number of private
universities has increased from 173 in 2012 to 186 till August 2014. The
sector is also witnessing new for-profit companies working in the higher
education services space.

Attracted by the high demand and enrollment rates, several foreign
higher education institutions are entering India through collaborations
and twinning agreements. The foreign institutions are expected to
benefit further due to ongoing developments in government regulations
such as the Foreign Educational Institutions (Regulation of Entry and
Operations) Bill, 2010, allowing foreign players to setup educational
institutions in India, and RUSA (Rashtriya Uchchatar Shiksha Abhiyan)
initiatives which have an objective to achieve 32% gross enrollment
ratio in higher education by 2017, the end of current five-year plan.

The higher education sector is witnessing several favorable trends, such
as expansion and collaboration among universities and higher education
institutions, introduction of new institutes and products, investments,
and increasing adoption of technology.